Item - 2026.EP25.2

The Chief Executive Officer, Exhibition Place, recommends that the Board of Governors of Exhibition Place:

1. Approve the Proposed 2027 Above the Line Capital Works State-of-Good-Repair Budget (Sections A and B of Appendix A) of $20.075 million funded by debt, as part of the ten year (2027-2036) proposed program submission to the City of Toronto.

2. Direct the Chief Executive Officer to submit the 2027 Capital Budget and any changes or directions by the Board to the City Financial Planning Division as part of the 2027 Budget Process.

Toronto, being North America’s fourth largest City is home to Exhibition Place. The site currently hosts 2,000 events annually with approximately 5.5 million visitors per year for exhibitions, conventions, events, and entertainment, and we are moving towards becoming a 365-day destination for an impressive range of activities. It is important to note that Exhibition Place is pedestrian friendly, and we are visited by our neighbours to the north, from across the country and around the world.

Exhibition Place's vision is to become Canada’s premier destination for conventions, exhibitions, events, and entertainment. We are a unique site in North America, and our goal is to transform Exhibition Place into an intimate space that facilitates unimpeded movement of people.

On June 22, 2026, the City’s Chief Financial Officer and Treasurer provided supplementary instructions for all City Divisions and Agencies with the preparation of the 2027 Capital Works Budget as Part of the Ten-Year Submission.

Supporting the City objective of minimizing debt funding, Exhibition Place staff have worked towards minimizing debt funding for Exhibition Place new projects, also taking into consideration inflationary pressures, and supporting our vision. The change from 2026 to 2027 10-year Capital Plan excluding carry-forward for Exhibition Place managed projects is a year-over-year change of $17.299 million over the 10 years.

Overview

Overall, our 10-year Capital Works Plan for Exhibition Place is $225.379 million. Throughout the budget process Exhibition Place staff worked closely with City FPD in developing the budget. The City practice for 2027 allocation of funds is still based on the Board capacity to spend but is linked more closely to the City's ability to fund the projects with debt.

Annually, staff review the 10-year Capital Works Plan; this annual review procedure allows Exhibition Place to adjust its current State-of-Good-Repair (SOGR) program each subsequent year based on changing operational needs, building/audit assessments, legislative changes, mandates, and priorities.

Exhibition Place staff have submitted the 2027 Capital Works Budget to City FPD to meet the City Manager September deadline; however, due to the budget submission schedule, City FPD understands that the budget is subject to Board approval and that the Board therefore reserves the right to make changes to the Capital Works Budget content. Exhibition Place staff will notify the City of any changes or directions made by the Board.

In accordance with City guidelines for capacity to spend, the City's ability to fund, building assessments and SOGR priority, a total of $20.075 million net program is recommended for 2027 Capital budget.

The 2027 Capital Budget includes:

1. New Projects for a total amount of $13.875 million cash flow in 2027 (Section 'B' in Appendix A) to be funded by debt for various upgrades within existing buildings, parking lots and roads grounds wide.

2. Previously Approved total 2027 cash flow commitment of $6.200 million for:

a. Sidewalks, Pathways, Roads, and Lots,

b. Security Systems Upgrade Grounds-wide, and

c. Replacement of High Voltage Priority Feeders

The total cash flow commitment for items and bare $4.200 million for 2028 and $4.200 million for 2029 respectively).

In summary, the total budget cash flow for Above the Line Capital Program 2027 (Sections A and B in Appendix A) including New Projects and Previously Approved is $20.075 million.

Even with the additional funding being recommended, the Net Accumulated SOGR Backlog at the end of 2027 for Exhibition Place stands at $159.075 million.

Capital Needs Constraints

The proposed 2027 program is $2.450 million lower than the $22.525 million Exhibition Place 2026 Capital Budget. Despite the continued investment, the net accumulated State-of-Good Repair backlog is projected to increase from $92.240 million at the end of 2026 to $159.075 million at the end of 2027, an increase of $66.835 million, or approximately 73 percent.

In addition to the $225.379 million required for the 10-year above the line capital works program, there exists $149.900 million of capital projects that are below the line. The term 'below the line' refers to projects not approved but that have capital needs or more specifically projects that their capital needs cannot be accommodated within the City capital plan even though the Board has the capacity to deliver. The projects under these constraints for Exhibition Place in the 10-year Capital Works Plan consist of $54.900 million for the Festival Plaza Development, $20.000 million for Enercare Centre Floor Ports Rebuilding and $75.000 million for the Industry Building Renovation.

The proposed 2027 Capital Works Program cash flow totals $20.075 million for Exhibition Place managed projects as a total program budget funded by debt, details of which are in Appendix A to this report.